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The three-year agreement sees DHL's specialist fashion unit continue to develop and provide all Debenhams' warehouse and distribution services to 157 stores across UK and Ireland. DHL operates all three of Debenhams' UK distribution centres, providing a full array of transport and warehouse services. I

 

n response to the challenges in the retail market, Debenhams, working with DHL, has undergone a two-year cost improvement programme delivered through internal process reviews, operational developments and streamlining including advancements in the warehouse picking operations that have provided business growth benefits.

 

The developments have delivered great year-on-year cost reductions through which Debenhams has managed to cut the cost per unit by more than 10 percent since 2006/2007, while absorbing inflationary pressures in large spend areas such as fuel and energy.

 

DHL has also taken over the operation of three off-site stock rooms, allowing DHL to develop new services, demonstrating its effectiveness and added value in elements of the supply chain that are normally not considered part of traditional retail logistics.

 

Paul Richardson, managing director, DHL Supply Chain Fashion UK, said:

 

"Our partnership with Debenhams has a history spanning more than a decade and in this time we have worked together to provide the most efficient solution in a demanding and dynamic business. The achievements of this partnership contributed to Debenhams' recent commitment, which reflects the strength of the solution and creates exciting opportunities for both companies." DHL now manages over 120 million units annually, which spans Debenhams' diverse range of products across several market segments including fashion, beauty, home wares, linen and jewelry.